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Adani Total Gas shares plunge 75%

Furthering the downfall of Adani, their Adani Total Gas in partnership with TotalEnergies suffers thr brunt of the Hindenburg report.

What is happening: The joint venture between Adani companies and TotalEnergies- Adani Total Gas has seen a plunge in its gas shares with a fall of 75%.


Why it matters: The fall in shares is troublesome to say the least because when TotalEnergies acquired 37% of the firm back in 2019, it set the template for the group to rope in global investors which now seems precarious at best.


Backdrop: Adani Total Gas is the largest customer of the joint venture between an Adani Ports subsidiary and TotalEnergies, accounting for over half of its revenue.

  • This fall not only affects Adani but TotalEnergies just as much.


The big picture: The Adani Gas-TotalEnergies deal set the template for bringing in other global strategic investors which would have been a key enabler of the group’s capital-heavy expansion.

  • It gets more muddled given the context that TotalEnergies has already put its plan to buy 25% of Adani Enterprises’ green-hydrogen venture that was announced back in June last year on hold.


The numbers: A little longer than a month back, Adani Total Gas was worth almost $52 billion, making it the most valuable Adani company.

  • But now post the Hindenburg report, Adani total Gas market cap is less than one-third of the initial $52 billion.


What else: Despite the drastically falling stocks, Adani Total Gas continues to be TotalEnergies’ largest and most lucrative bet in the current times.

  • TotalEnergies’ stake in the company is now worth approximately $5 billion which is 7 times a return on its investment.


Read in short: Adani Total Gas, just like every other adani venture at this point too faces a huge fall in its shares but hope still exists given that the venture has shown a 7x return on investment to TotalEnergies which is not a small feat.

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